Board documents are an essential source of information that guides the key decisions that keep a business on track. Insufficient information can overwhelm an individual on the board and result in poor decision-making, while too little means the board is missing important insights or risks losing control of the business. To avoid this, board members need access to thorough and accurate information that is easily digestible and well-organized. This article provides best practices for creating effective documents for board members that meet these requirements.
Effective board papers include the most up-to-date and relevant information that is directly related to the strategic decision to be made. They are concise and clear, employing formal business writing styles and refraining from technical terms. Boards comprise diverse backgrounds, and therefore information should be tailored to each directors needs. Marketing jargon, as an example is not appropriate for finance professionals. If you’re creating documents for boards, make sure you include a glossary for any particular terms or acronyms. This will ensure that everyone can understand the document.
Additionally, the board should establish its own internal guidelines and standards for the preparation of documents for the board. This includes using a template, choosing the preferred fonts and creating an appendix to share resources or provide additional details. The board should also set rules for a quorum and the number of members required for a meeting to be held, making sure that all directors participate and be heard.
Boards should distribute the documents for board meetings early enough to allow enough time for directors to go through them before the meeting. A week is typically an ideal timeframe to ensure directors have ample opportunity to read the documents and prepare for the meeting.
